BAE To Sell Half Its Saab Stock

[Marxist]

BAE Systems announced that it is ridding itself of half of its 20 percent ownership in Saab AB, according to a March 5 statement from the British defense giant.

The company intends to sell 1,047,180 of its A shares in the Swedish aerospace group and 11,166,173 of its B shares to "Investor AB for a cash consideration of" 1.066 billion Swedish kroner ($149.6 million), according to the announcement.

Following the sale, BAE will retain 11,166,173 B shares.

This comes five days after BAE pleaded guilty to charges made by the U.S. Department of Justice, including conspiring to defraud the United States by "impairing its lawful functions" and other violations. The company will pay a $400 million fine.

BAE To Sell Half Its Saab Stock - Defense News

 

[pak-yes]

hooo 150 million dollars not a big sum.If only our POF could buy this stocks.

I mean they earn over 500 million dollars profit each year so this amount should not be a problem.

 

[pak-yes]

BAE sells 10 percent stake in SAAB AB

LONDON – Defense contractor BAE Systems PLC said Friday it has sold a 10.25 percent stake in Swedish defense company Saab AB for 1.066 billion kronor ($149 million) as part of an ongoing divestment process.

BAE said the sale to holding company Investor AB of Stockholm represented half of its 20.5 percent stake in Saab, maker of the Gripen fighter aircraft. BAE said it intended to sell the remainder of the shares through a market placing "in due course."

Following the transaction, Investor will holds shares representing 30 percent of the capital and 39.5 percent of the voting rights in Saab.

Saab and BAE formed a 50-50 joint venture in 1995 to develop the export business for the Gripen fighter. Following Saab's share flotation in 1998, BAE held a 35 percent stake in it; it sold 15 percent in 2005.

"Through the transaction, we have clarified the ownership structure in Saab AB. BAE Systems has been a good partner for Saab AB, but over time there has been less alignment of interests and the emergence of some overlapping businesses, while Saab AB has built a strong internal export capability," said Boerje Ekholm, Investor's CEO.

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Now the Article says that BAE will sell remaining stake soon.Isn't it a Golden Opportunity for Army and GoP.

Pakistan can buy the remaining 10% stake when it offered in the market.Through POF or PAC.I mean POF makes over 500 million dollars a year.

So to raise 150 million $ shouldn't be an issue.But look at the assets i mean it would be a Strategic Deal

 

[Marxist]

ya any one can buy tat 10% stake...but there will be a stiff competition.

 

[pak-yes]

Yes there would be Competition but we can Raise our Price.We must not at any cost lose this deal.I mean we are talking about stake in a major defence Contractor.

 

[Marxist]

i heard they have sold shares to Swedish investment company Investor AB for SEK 1,066 billion

 

[manglasiva]

D E L E T E D

 

[pak-yes]

i heard they have sold shares to Swedish investment company Investor AB for SEK 1,066 billion

Yes the link says so.But it also says that they are going to offer their remaining 10% stake in near future through market.So Pakistan must be prepared for it.

 

[rizhussain44]

hooo 150 million dollars not a big sum.If only our POF could buy this stocks.

I mean they earn over 500 million dollars profit each year so this amount should not be a problem.

Bro, on this other thread "Pakistan Ordnance Factories facing financial crisis" it was reported that POF is short of funds at the moment, which is I think a shortage of something around $500 million. How can POF buy the SAB stocks in this kinda situation.

 

[pak-yes]

Bro, on this other thread "Pakistan Ordnance Factories facing financial crisis" it was reported that POF is short of funds at the moment, which is I think a shortage of something around $500 million. How can POF buy the SAB stocks in this kinda situation.

I was just saying that POF could be used as a front Company.Although government of Pakistan can use any other Institution.I mean just look at it's just 150 mils.The Price of Only 4-5 F-16s and just look what we are getting.